The document discusses entrepreneurship, characteristics of entrepreneurs, and types of entrepreneurs. It defines an entrepreneur as someone who creates a new business by identifying opportunities and assembling resources to capitalize on them while facing risk and uncertainty. Successful entrepreneurs are goal-oriented, hard-working, innovative, risk-takers who are future-oriented and desire responsibility. The document outlines different types of entrepreneurs including innovating, imitative, novice, and serial entrepreneurs. It also discusses small business owners and distinguishes them from entrepreneurs focused on growth.

1. Unit 4: Entrepreneurship,
charactership and types
P. Management

2. Introduction
• Entrepreneur:
• The term ‘entrepreneur’ is derived from the French word ‘entrprendre’ which
means ‘go between’ or ‘to undertake.
• Thus entrepreneur/entrepreneurship is one who creates a new business in the
face of risk and uncertainty for the purpose of achieving profit and growth by
identifying opportunities and assembling the necessary resources to capitalize on
them.
• The term entrepreneur may be properly applied to those who incubate new
ideas, start enterprise based on those ideas and provide added value to the
society based on independent initiative
Adam Smith (1776)
• Individual who could recognize potential demand for good and services
Jean Baptiste Say (1803)
• Art and skills of creating new economic enterprises

3. Introduction cont..
Carl Manger (1871)
• The change agent who transforms resources into useful good and
services
• David Silver - A successful venture capitalist
• Entrepreneurs are those who are energetic, single minded and having a
mission and clear goal.
Joseph Schumpeter
• A force of creative destruction where by established way of doing
things are destroyed by the creation of new and better ways to get
the things done

4. General characteristics of entrepreneur
• Goal oriented
• High level of energy /hard working (energetic and diligent)
• Preference for moderate (calculated) risk: not wild risk taker
• Innovative
• Optimisitic
• Future orientation
• Desire for responsibility: take personal responsibility to start business
• Flexibility
• Confidence in their ability to succeed
• Desire for immediate feedback

5. Characterstics..
• Goal oriented: A successful entrepreneur should have strong need for
achievement of organizational goal. The main goal is to earn profit by
developing creative ideas and taking calculated risk.
• Hard working: Enterprenur should be hard working. They should have
feeling of high energy, enthusiasm and diligence.
• Innovative: Successful entrepreneur is conitinously involved in
innovation. They focus on research and development ideas to
facilitate innovative ideas.

6. Characterstics..
• Taking risk: Enterpreneur are ready to take risk but in very calculated
manner. But generally they did not take wild risk.
• Optimisitic: Enterpreneur should be optimistic and action oriented.
They should have patience, courage and ability to adjust changing
environment in a confident manner.
• Future orientation: Enterpreneur should have long term vision of
organization. He should have ability to forecasting the future demand
and need .
• Desire of responsibility: A successful entrepreneur always interested
to bear overall responsibility of business. He generally blame other for
failure of business.

7. • Flexibility: A succesfull entrepreneur should have quality of flexibility.
As per demand , changing environment of business, one should be
mentally ready to manage the organization. They should not be static
and rigid .
• Confidence: They have very high confidence that business will be
success, which keep them motivating all the time.
• Desire to receive feed back: Entrepreneur always seek feedback of
their work. They never hesitate to receive criticism.

8. characteristics

9. Benefit of Entrepreneurship
• Create your own destiny
• Make a difference
• Reach your full potential
• Reap/Gain unlimited profits
• Contribute to society and to be recognized for your efforts
• Do what you enjoy and to have fun at it

10. Small business
• Small business person starts a venture that serves a local market with
products or services simply for income without growth potential or
without the intention of growing.
• eg; local restaurant person

11. Distinguishing Factors of Entrepreneur and
Small Business owners
• Vision of growth
• Commitment to constructive change
• Persistent to gather necessary resources
• Energy to achieve unusual result

12. Types of entrepreneur/entrepreneurship
• Innovating Entrepreneur: Who introduces new goods, inaugurates new method of production,
discovers new market & reorganizes the enterprises
• Imitative Entrepreneur: Characterized by readiness to adopt and modify successful innovations
inaugurated by successful innovating entrepreneur.
• Drone Entrepreneurs: These entrepreneurs are reluctant to change since they are very
conservative and do not want to make any changes in the organization. They are happy with their
present mode of business and do not want to change even if they are suffering the losses.
• Novice Entrepreneur/First generation: who do not possess any entrepreneurial background. They
start industry by their own innovative skills
• Habitual Entrepreneur/Second generation: Is an individual who has prior business ownership
experience. Who inherit the family business and pass to next generation
• Serial Entrepreneur: Is an individual who has sold or closed an original business, established
another new business, sold or closed that business & continue this cycle
• Portfolio Entrepreneur: Is an individual who retains an original business and builds a portfolio of
additional businesses through inheriting, establishing or purchasing them.

13. Types cont..
• ON THE BASIS OF CAPITAL OWNERSHIP:
i)Private entrepreneurs:- individual or group set up enterprise, arrange
finance, share risk etc..
ii)State entrepreneurs:- means the trading or industrial venture
undertaken by the state or the government itself.
iii)Joint entrepreneurs:- the combination of private and government
entrepreneurs

14. Questions
1. List down the Name of Nepali entrepreneurs based on the
definition of entrepreneurs.
2. After completion of D Pharm, do you want to be an
entrepreneur? Explain with example